Labour Laws And Startups

The Emergence Of Labour Rights 

Amongst the various laws that govern different aspects of human activities & development, labour laws occupy a very prominent position. It is said that labour is the most  important factor in the process of social economy.

Since the emergence of Marxism in the early 19th century AD, labour laws and rights have become very important. In fact, with the rise of Marxism, labour community and leaders became the chief deciding factor of social policies and political parties.

Labour Rights Continue To Be Important Post-Marxism

Marxism has receded in the last several decades but the importance of the labour continues to define the hallmarks of modern democracies. 

Aa labour signifies the basic and the most fundamental human factor in economic development and social emergence, so labour laws continue to be a very important for various areas of societal activities  

Labour is important for every segment of production and business. The same holds true for the Startups. A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. 

Also Read Know About The Laws For Startups

Labour Law Compliance For Startups   

Labour law compliance is basically some mandatory rules & regulations which are a must for a company to follow. The purpose of this compliance is for the ethical conduct of affairs part of wealth management. It includes employee benefits & termination, the rules & regulations set for employees, etc. The ministry of labour & employment, with the aim to support & promote startups & thus encouraging young entrepreneurs in setting up a new start-up venture hence creating multiple employment opportunities.

As per the government, startups shall be allowed to self-certify with 9 labour & environmental laws. Also, these exemptions will provide new entrepreneurs get accustomed to the labour laws & their implementing authorities. The policy goes on to say that for a period of 3 years, inspections will be conducted. However, in the subject to a written complaint of violations filed startups can also be subject to inspection.

The Laws That Startups Must Comply With 

The startups according to the new policy may self-certify compliance with respect to the following labour laws:

The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979

The Payment of Gratuity Act, 1972

CLRA or The Contract Labour Regulation & Abolition Act, 1970

The Employees Provident Funds & Misc. Provisions Act, 1952

The Employees State Insurance Act, 1948

Industrial Employment (Standing Orders) Act, 1946

Trade Unions Act, 1926

Industrial Disputes Act, 1947

In the case of environmental Laws, startups falling under the white category as defined by The central pollution control board would be able to self-certify compliance.

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Statutory Compliance for HR & Labour laws 2019

Statutory Compliance in HR refers to the legal framework basically all the legal proceedings that an organization should adhere to in dealing with all of its employees Statutory Compliance for Hr provides for 8 statues & regulations which every Hr must follow as per the labour laws:

ESI or Employees state insurance as guided under The Employees State Insurance Act, 1948 which says that all the employees working in the factories & industries shall be insured under this act

Provident fund or the payment to an employee after his/her employment as is guided under the Employees Provident Fund Act & Misc. Provisions Act, 1952.

Professional Tax or the employment Tax which is basically a state-based tax which each & every employee receiving the pay from the revenue of the central government has to pay. The professional tax also applies to any organization which is controlled or owned by the central government.

Gratuity as governed under the Payment of Gratuity Act, 1972 which is basically an amount given to the employees after they leave a job after completing 5 years or more

Wages of the workers as governed under the Minimum Wages Act, 1948. The provisions of this act provide for the fixing of the minimum rates of wages to the employees.

The Maternity Benefit Act, 1961 which provides for the payment of maternity benefit to all the women workers.

The Payment of Bonus Act, 1965 imposes a liability on the employers to pay bonuses to their employees. The act provides for the payment of minimum & maximum bonus as per the work of the employees. This act applies to every factory where 10 or more workers are working.

Payment of wages to the workers as guided under the Payment of Wages Act, 1936. The act provides the remedy to the workers who were either paid wages not in time or unauthorized deductions have been from their wages

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